Electronic Document Management (EDM) is a system that enables the creation, storage, transfer, and processing of documents in a digital format. It utilizes modern information technologies and software instead of paper-based document workflows.
According to a McKinsey study, the volume of documents companies must process increases exponentially every year – by nearly 50%. Therefore, optimizing this process represents a critical area of growth for businesses overall.
In particular, Forrester research indicates that investments in document management automation can pay off in less than six months after implementation and yield a nearly 2.5x return (248%) within three years.
However, the business value of a specific electronic document management system (EDMS) and its impact on business processes can only be assessed by evaluating changes in key performance indicators after its implementation.
Key KPIs Affected by the Implementation of Electronic Document Management
The success of any business project, including IT ecosystem upgrades, is quantitatively measurable. This is expressed through changes in specific KPIs that directly affect business efficiency and profitability.
Below are the key KPIs that help evaluate the effectiveness of implementing an electronic document management system in a company and identify bottlenecks to optimize processes. These include:
- Document Processing Time: Measured as the average time a company spends processing a single document. It is calculated as the total time spent processing all documents divided by the number of documents processed.
- Percentage of Tasks Completed on Time: Defined as the number of tasks completed on time divided by the total number of tasks, multiplied by 100.
- Percentage of Errors in Documentation: Calculated as the number of documents with errors divided by the total number of documents, multiplied by 100.
- Time Savings in Document Processing: The difference between the time spent on manual document processing and the time needed to process the same number of documents after automation.
- Percentage of Employees Using EDM: Determined as the number of active system users divided by the total number of employees, multiplied by 100.
- Reduction in Operating Expenses (e.g., paper and office supplies): Calculated as the difference in expenses for these items before and after implementation, divided by the total expenses, multiplied by 100.
- Number of Documents Processed in the System: Compares the number of documents processed within a specific timeframe to the volume handled during the same period before EDM implementation.
- Document Accessibility or Time Spent Searching for Documents: Measured as the total time staff spend searching for all documents divided by the number of documents found.
- Reduction in Errors Caused by Improper Storage or Loss of Documents: Calculated as the number of lost or improperly stored documents divided by the total number of documents, multiplied by 100.
- Average Time Required to Train Employees on the New EDM System.
Research Results on the Impact of Electronic Document Management Automation on Key Business Profitability Metrics
Numerous studies summarize the practical experience of companies, proving that implementing electronic document management (EDM) reduces overall company expenses, enhances business process efficiency, and decreases document processing time.
The introduction of EDM systems consistently leads to increased overall productivity and profitability.
For instance, research by Forrester shows that implementing electronic document management reduces document processing time by 55% and boosts employee productivity by 45%.
Similarly, McKinsey studies indicate that companies adopting EDM can achieve a 15-25% productivity increase within the first 12-18 months, primarily due to having a clear automation strategy and proper integration with other corporate systems.
Given the unjustifiably high cost of manual document creation, Gartner analysts predicted in 2019 that by 2025, 50% of all business invoices would be created and paid without manual intervention, rising to 80% by 2030.
According to McKinsey’s conclusions, automating document management processes can boost global business productivity annually by 0.8-1.4%.
Additionally, implementing EDM systems not only helps companies reduce costs but also enables them to create more transparent and secure processes – critical for enhancing competitiveness and minimizing risks in dynamic environments.
SmartPoint DMS: A Driver of Business Processes
Considering the above, let’s evaluate the business value of the SmartPoint DMS electronic document management system, developed by the specialists of SMART business – a leading Microsoft partner.
The system is designed as a process-building constructor, enabling the automation of a wide range of related business processes through electronic document management.
The implementation of SmartPoint DMS delivers the following results:
- A 52% reduction in document processing costs, primarily by lowering operational expenses on paper, printing, mailing, and storage.
- A 64% decrease in document processing time, minimizing the time employees spend on routine tasks.
- A high level of data security and transparency in business operations, critical for corporate compliance and risk management. Additionally, it ensures convenient access to data from any location with an internet connection.
Moreover, SmartPoint DMS enhances document accuracy by 88% thanks to integration with other corporate systems and seamless data exchange. This eliminates human error and minimizes mistakes from manual data entry.
Impact of SmartPoint DMS on KPIs
SmartPoint DMS also contributes to improving compliance levels by standardizing and clarifying processes, making them easier to audit. This reduces reputational risks, particularly important in industries like insurance and finance.
Furthermore, clear and transparent document approval processes and the elimination of paper routines boost satisfaction levels among employees, clients, and contractors.
In conclusion, SmartPoint DMS is a solution that not only automates and optimizes the processes of creating, processing, and storing documents but also takes associated business processes to a new level of efficiency. It reduces operational costs and enhances document management control at all stages.
This is largely due to SmartPoint DMS aligning with the best European practices for document approval and integrating with European document exchange systems. The system is enhanced with AI-based technologies, and its broad integration capabilities make it an organic element of a company’s IT ecosystem.
When combined with extensive customization options, the ability to support process changes, and user-friendly design, it’s clear that implementing this product can become a true driver of business growth.
